Prices to insure ships in the Persian Gulf are spiraling to levels not seen in decades, reflecting the risk of Iranian attacks.
Insurers are quoting 5% to 10% of a ship's value to cover war risk, many times the typical 0.25% peacetime rate, said Philip Smaje, head of transportation and logistics at broker Aon. Rates are highest for vessels linked to the U.S. or Israel, he added.
"It's the highest war risk rating I've seen in the last 25 years," said David Smith, head of marine at broker McGill and Partners.
Insurance remains widely available in the London market for any ship willing to brave the perilous Strait of Hormuz-the crucial waterway that's been effectively blocked by Iran, creating turmoil in energy markets worldwide. "The reason ships are not moving is not through a lack of insurance," said Neil Roberts, head of marine and aviation at the Lloyd's Market Association, which represents underwriters in the market. "It is a question of the risk to crew and vessel safety."
President Trump's plan to sell insurance to ships in the Gulf, which could help ease rates, has yet to be implemented. Officials are scrambling to work out which ships and cargos will be covered, and on what terms.
"What would really drive rates down is a successful reopening of the Strait," Smith of McGill said. "The insurance is just the tail on the dog."
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
March 24, 2026 07:07 ET (11:07 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments